Many have build their fortunes through real estate investment. Real Estate investing is one of the best tools to build long term wealth and financial security. So it is obviously an excellent tool. There are several ways to incorporate Real Estate into one’s overall financial picture.
There are two different types of real estate taxes. It’s true. About 50% of the states are tax lien states, and the other half are tax deed states. States like California and Texas are deed states while Arizona and Florida are lien states.
So what’s the difference? A tax lien state is one where lien is filed on a property by the local jurisdiction for failure to pay the property taxes. So if you’re an investor who ends up buying that lien, you do not own the property. Instead, you only have a lien on the property and you’re waiting for the owner to pay the taxes that are past due. With this you receive interest or any other penalties. It can end up being a nice return for your investments.
Tags: Real Estate Taxes
